You are here

This content was subject to assurance by SGS Italia S.p.A. (14 March 2014).

Supply chain standards

We are committed to ensure impartiality and equal opportunities for all parties involved in the supplier selection process. Suppliers are selected based on the quality and competitiveness of their products and services, and on their respect of social, ethical and environmental principles.

This commitment is a prerequisite to becoming a Group supplier and developing a lasting business relationship with the Group. For this reason, and in order to address, prevent, and mitigate any potential impacts, contractual clauses have been progressively introduced since 2009, and the new agreements require suppliers to comply with both the Group’s code of conduct and specific Sustainability Guidelines.

Suppliers must duly carry out business activities according to the ethical standards and procedures in force in the country/countries in which they operate, and as set forth by the code of conduct and Sustainability Guidelines.

Should a supplier fail to follow these principles, the Group reserves the right to terminate the business relationship or require the supplier to implement a corrective action plan, to be verified by audit. Compliance with environmental, social and governance clauses is required in 100% of new agreements (General Terms and Conditions). For the sake of clarity, the above clauses are also included in new agreements (in addition to the General Terms and Conditions) regarding each specific project.

Supplier Sustainability Guidelines are available on the Supplier Portal and on the Group corporate website. They focus on the following principles:

Human rights and working conditions

rejection of the use of forced or child labor in any form

recognition of the right to freedom of association in accordance with applicable laws

freedom from harassment and discrimination

safeguarding of employee health and safety

guarantee of equal opportunities, fair working conditions, appropriate working time, equal compensation, and the right to training for employees

Respect for the environment

optimization of the use of resources

responsible waste management

elimination of potentially hazardous substances from the manufacturing process

development of low environmental impact products

use of an environmentally sustainable logistics system

Business ethics

high standards of integrity, honesty and fairness

prohibition of corruption and money laundering

Group Purchasing monitors supplier compliance with the Guidelines through a Sustainability Committee (“the Committee”). The Committee’s role is to review performance and to identify the appropriate actions for non-compliant suppliers in order to prevent and mitigate actual and potential adverse impacts. The Committee consists of the Processes Compliance manager, the Head of the Group Supplier Engineering Unit, and the General Counsel. The Group is committed to ensuring that all new Fiat and Chrysler purchase agreements regularly incorporate contractual clauses on adherence to Sustainability Guidelines.